Bankruptcy Court Rules Partial Refunds for DirectAir Customers
Buffalo, NY (WBEN) A federal bankruptcy court has ruled a bankrupt airline must reimburse customers roughly a quarter of the ticket prices.
“Direct Air passengers were profoundly impacted by the sudden shutdown of the airline and the cancellation of their flights,” said Congressman Brian Higgins. “While this is a positive initial step, consumers deserve to have confidence in the air travel system and that means reliable service and appropriate reimbursement when cancellations occur.”
Approximately 1,900 consumers who bought tickets with cash or means other than a credit card will receive refunds. Another approximately 91,000 customers who bought tickets for cancelled flights with a credit card have already received refunds through credit card chargebacks.
On March 12, 2012 Direct Air cancelled flights out of Niagara Falls International Airport and indefinitely suspended all operations before filing bankruptcy.